Four Great Tips for Better Money Management

If you want to know how to start saving money, take a look at your personal finance habits and determine effective ways of cutting spending.

Careful financial planning can help you to learn how to save money every month, eventually leading to a successful retirement.

True wealth is not only about how much money you have. It is also about working hard, saving money and cutting spending. Take a look at the rich people that you know and think about how they got there.

“Who wants to be a millionaire?” the famous TV game show asks. The answer is, of course, plenty of people. However, getting rich quick isn’t as easy, and many financial schemes that promise high returns may not be as attractive when you read the small print.

While millionaires may sound glamorous, having a stable financial future is more important than the thrill associated with a glitzy lifestyle. Adopting careful financial practices and learning how to save your money can increase your net worth, which may be even more important than joining the millionaires’ club. In the financial world, time may be your best friend and discipline your best ally.

There are no guarantees of quick fortunes, but sensible financial habits and cutting spending may be your best bet in achieving the financial future of your choice.

Here are Four Tips for Better Money Management

1. When you get a raise or bonus or come into some inherited wealth, don’t spend the “extra” money. While you could allow yourself a small luxury here and there, look to save some of this money. If you are not sure how, then consult with a qualified money saving expert. And remember that many wealthy people actually live quite simply. That’s why they are wealthy.

2. If you and your spouse are both working, see if you can trim your expenses and live off one income, while saving the additional funds. This way, you have emergency money for situations of need, and if all goes well, a retirement nest-egg when the time comes.

3. Keep reevaluating your expenses and watching your bills. Is your car costing you more in repair bills than it would to buy a new one? Depending on your traveling habits, perhaps a combination of public transportation and taxis may be cheaper than owning a vehicle.

4. Review your investments and pension plans. Consult with your financial advisor on a regular basis to review your portfolio’s diversification. Take into account your changing needs as you and your family grow older, and be flexible enough to change streams if needed.

Disclaimer: This article is for educational purposes and is not a substitute for investment advice that takes into account each individual’s special position and needs. Past performance is no guarantee of future returns.

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Douglas Goldstein, CFP®, is an investment advisor, president of Profile Investments (www.profile-financial.com) and host of the personal financial radio show, Goldstein on Gelt. He can be reached at doug@profile-financial.com. Follow Doug on Twitter: @DougGoldstein.